Ausdauer, the reason you still don't get it is that you are still trying to value EDIG based on their past. Stocks are valued based on their futures.
QCOM for example is being valued 10 years into their future right now.
If that sounds crazy let me put it like this.
If I own a lake front home where the prices have been going thru the roof because there are no more lots available on the lake. The home is appraised today for $200,000. All the realitors are saying that by next year it will sell for $300,000.
I put it up for sale today at $250,000. Would you buy it today for that overvalued price knowing that you could make $50,000 on it by next year? Of course you would.
It's the same with stocks. What appears to be ridiculous valuations today will be a steal in the future. EDIG for example has TTM revs of what approx. $200,000?
For this year they should do approx. $8 million from the Lanier product alone. So if we compare last year with this year just using the Lanier revs it looks like this:
REVENUES:
Qtr. ended 3/30/99 = $14,000
Qtr. ended 3/30/00 = $2,000,000 (est.)
Qtr. ended 6/30/99 = $37,000
Qtr. ended 6/30/00 = $2,000,000 (est.)
Qtr. ended 9/30/99 = $150,000
Qtr. ended 9/30/00 = $2,000,000 (est.)
That would give us revenue growth rates of the following:
For the year 2000
1st Qtr. = +14,000%
2nd Qtr. = +5,305%
3rd Qtr. = +1,233%
This doesn't include any revenues from their music devices. No revs from any future Intel devices or any number of other devices they are working on.
In my opinion, EDIG is going to capture a majority share of the entire portable music player market. What do you think that will be worth?
So look to the future when trying to value a company. EDIG has the potential to become a standard in several huge markets. The potential from even one would be enormous.
Mark |
